Mortgage Calculator with Amortization Schedule
This free mortgage calculator computes your monthly payment (principal + interest) and generates a full loan amortization schedule showing how each payment is split between principal and interest over the life of the loan. Adjust the home price, down payment, interest rate, loan term, and compounding convention to compare scenarios instantly.
Mortgage Payment Formula
Monthly mortgage payment (M) is calculated using the standard amortization formula. Choose Monthly (US Standard) for a nominal annual rate divided by 12, or Semi-Annual (Canadian Standard) for an effective monthly rate of (1 + annual rate ÷ 2)^(2 ÷ 12) − 1.
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P = loan principal (home price minus down payment)
- r = selected effective monthly interest rate
- n = total number of payments (years × 12)
Calculator Inputs
- Home Price ($) — the purchase price of the property
- Down Payment ($) — the upfront cash payment; the remainder becomes the loan principal
- Annual Interest Rate (%) — the fixed mortgage rate; does not account for PMI, taxes, or insurance
- Loan Term (Years) — typically 15 or 30 years
- Compounding Frequency — Monthly (US Standard) or Semi-Annual (Canadian Standard)
Example: $400,000 Home, 20% Down, 7% Rate, 30-Year Term
A $400,000 home with a $80,000 (20%) down payment leaves a $320,000 loan. At 7% annual interest over 30 years, the monthly payment is approximately $2,129. Total interest paid over 30 years is around $446,000 — more than the original loan amount. Choosing a 15-year term at the same rate would raise the payment to roughly $2,877/month but cut total interest to around $197,000.
Frequently Asked Questions
- Does this include property taxes and insurance?
- No. This calculator shows only principal and interest (P&I). Your actual monthly payment to the lender typically also includes property tax escrow and homeowner's insurance (PITI), which can add $300–$1,000+ per month depending on location and property value.
- What is PMI?
- Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20%. PMI typically costs 0.5–1.5% of the loan amount per year and is not included in this calculator.
- Should I choose a 15-year or 30-year mortgage?
- A 15-year mortgage has higher monthly payments but significantly less total interest and builds equity faster. A 30-year mortgage has lower payments, offering more cash-flow flexibility, but costs more in total interest. The right choice depends on your income, other financial goals, and risk tolerance.
- What happens if I make extra principal payments?
- Extra principal payments reduce the outstanding loan balance directly, shortening the loan term and reducing total interest. Even an extra $100–$200/month on a 30-year mortgage can shave years off the loan.